I agree with--you really don't need a very big SD card with your reader. I have about 275 full length books on the internal memory of the reader (which I think is only about 200mb).
But, to answer your question, with the latest firmware Sony added support for SDHC cards. But, I've read posts here from several people who've had problems when they try to add large numbers (>1000) books to their reader.
Hope you enjoy your reader!
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